The continued decline in the new vehicle market has claimed another scalp, with GM Holden announcing today that the introduction of Cadillac into Australia has been delayed indefinitely.
GM Holden Chairman and Managing Director Mark Reuss describes the decision as being the only "common-sense" and "commercially responsible" one to make, given the tough economic climate. He said that the introduction of a new brand into the exceptionally challenging Australian market at this time, would not be a sound move.
?There is only one chance to properly launch this brand in Australia and in these challenging times, we believe we couldn?t give it the best chance of success," he said.
Ruess has confirmed that GM Holden will be devoting its energies to its core operations (we've heard that line from the parent company recently) and will continue to develop a range of alternative fuel technologies.
A second production line at GM Holden's Elizabeth plant in South Australia will be used to manufacture the upcoming four-cylinder Holden, based on the Chevy Cruze and future generations of the Commodore.
?There is no doubt the Cadillac CTS is a magnificent vehicle and the response since it was revealed at the Australian International Motor Show in October 2008 has been very positive.
"But obviously since then the market for new cars has continued to deteriorate, the challenging broader economic environment remains largely unchanged and the exchange rate has worsened for imports."
Cadillac's no-show in Australia, will not, it appears, affect the already established Premium Brands of Saab and Hummer. Rues has suggested that GM Holden will continue to focus on sales and planning for future introductions of new models for both brands.